Otto Place 91% sold after second-timer balloting, underscoring EC market strength
The following EC launch in the pipe is Qingjian Realty’s 748-unit job at Jalan Loyang Besar, got using a government land sales (GLS) tender in August 2024 at $729 psf per plot ratio. The project is aim at for launch at some time towards completion of this year, stated Fong.
Meanwhile, a record land rate was set at the recent EC GLS tender at Woodlands Drive 17, where City Developments Ltd paid $782 psf ppr in early August. Taking into account high construction costs and new gross flooring area harmonisation rules, PropNex anticipates units at the future project– yielding about 420 units– to be priced above $1,800 psf.
Second-timers describe investors who have previously received a housing subsidy from HDB. During an EC’s preliminary release, 70% of units are scheduled for first-timers, while second-timers are limited to 30%. This constraint is removed thirty days after launch, with balloting conducted for second-timers who were unsuccessful in securing a unit previously.
Located at Plantation Close in Tengah in the West Region, Otto Place is around the upcoming Tengah Park and Bukit Batok West MRT stations on the Jurong Region Line, slated for conclusion in 2029. The Tengah area is also flanked by Jurong East and Bukit Batok estates, providing a ready pool of prospective HDB upgraders. Fong added that closeness to schools and the neighboring Jurong Lake Area– reserved as the largest mixed-use establishment center outside the city– improves the property’s attract households.
According to PropNex, less than 60 unsold EC units continue to be on the marketplace. The most recent EC launch prior to Otto Place was Sim Lian Group’s 760-unit Aurelle at Tampines in March, which marketed 90% of units on launch weekend break. The remaining 52 units were purchased within hours when reservations opened for second-timers on April 12. To date, Aurelle’s average price is $1,766 psf based on caveats lodged.
Mark Yip, Chief Executive Officer of Huttons Asia, considered that second-timers commonly have larger family sizes and consequently favour larger units. “At Otto Place, all the four-bedroom units are totally sold,” he stated.
Joint property developers Hoi Hup Realty and Sunway Developments held the balloting for second-timer buyers of Otto Place exec condominium (EC) on the night of Tuesday, August 19. A total of 167 units were marketed throughout the exercise, according to the developers’ launch.
The 600-unit EC project had previously marketed 351 units during its launch weekend on July 18– 19, demonstrating a first take-up rate of 59%. With the more sales yesterday, the tally now stands at 548 units– over 91%– throughout one month of launch. Based on caveats lodged to date, the typical cost attained is $1,750 psf.
“With interest rates trending downwards, an approximated 85% of purchasers at Otto Place opted for the deferred payment plan, contrasted to around 75% in the time of the initial July start,” Yip added.
PropNex CEO Kelvin Fong attributed Otto Area’s solid productivity to its locational appeal, the dwindling supply of unsold ECs, and buyers’ awareness of rising EC land costs, which are anticipated to put in upward pressure on future launch prices.
